Analyst Chris Pierce from Needham reiterated a Buy rating on Rivian Automotive and keeping the price target at $14.00.
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Chris Pierce has given his Buy rating due to a combination of factors, primarily centered around Rivian’s upcoming R2 launch. The R2, a mid-size SUV priced around $50,000, is expected to significantly broaden Rivian’s total addressable market (TAM) beyond its existing, more expensive R1 model. This expansion is promising when considering the current electric vehicle (EV) and internal combustion engine (ICE) options available at similar price points, particularly when compared to the modest consensus estimates for R2 deliveries in fiscal year 2026.
Additionally, a consumer survey conducted in areas with low EV penetration revealed strong brand awareness for Rivian, minimal negative perception, and encouraging purchase intent. These findings suggest that Rivian is well-positioned to capture market share as the R2 enters the mid-size SUV segment. The $14 price target set by Chris Pierce is based on a valuation of 15 times the expected adjusted EBITDA for fiscal year 2028, discounted back to the present value.
In another report released on August 14, Benchmark Co. also maintained a Buy rating on the stock with a $18.00 price target.